Why is the Chinese market so important to these large companies other than it being a lot of people?

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I understand the Chinese market is HUGE but I don’t understand why companies like say blizzard feel as though they NEED China’s market. Does the rest of the worlds investments not make them enough to continue? Same with the NBA? Maybe a dumb question.

In: Economics

4 Answers

Anonymous 0 Comments

The answer to the question is exactly the one you state in the question. It is a large marker where you can sell lost of product so a large fraction the revenue for some product are from china.

To get som number movies is easy to look at a so for example for [Avengers: Endgame](https://www.boxofficemojo.com/movies/?page=intl&country=CH&id=marvel2019.htm) the total box office was $2.796 billion of that $614 million was in China that is 20% of the total. You can compare that with $858 million in US and Canada.
The distribution is not the same for product or even movies but it show how large the Chinese market is.

So for produce like moves, games, sport where the primary cost is to produce the move, game etc is something you do once and then distribute it to a huge number of a low cost per customer the profit margin is enormous it might be 50% for a move in a cinema and even higher for games.

So if they need the market depend of your usage of need but it can be a enormous part of there income.

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